The IRS allows you to claim your gambling losses as a deduction, as long as you don’t claim more than you won. Note that if you don't itemize, you can't deduct your gambling losses: If you had $5000 in winning sessions and $6000 in losing sessions, you have to report the $5000 as income, and you can't subtract out your losses, because you're not itemizing. You may deduct gambling losses only if you itemize your deductions on Schedule A (Form 1040)and kept a record of your winnings and losses. To learn more or to schedule a consultation with a member of our team, contact us today at 201-381-4472 or fill out our online contact form. If you do not have enough to itemize, however, you cannot deduct the gambling losses. Gambling losses are not a one-for-one reduction. Gambling losses are deducted from the winnings as an itemized deduction. You. Relatively few Americans itemize deductions on their tax return. If you're in the 22% federal tax bracket, you just saved $220. "You can deduct those losses to the extent of your winnings," Allen said. 7. In other words, you can’t have a net gambling loss on your tax return. Gambling Loss Limitation. Gambling losses are not deductible unless you have gambling winnings. Third, there’s no need to itemize your deductions. $19,400 for head of household. 2020 - $3,000 loss. However, if you received a Form. If you had a big win, are concerned about your tax liability, or have any questions related to gambling winnings or losses, contact the. You show the income, with no offset for losses. It is your responsibility to properly track and report your losses by keeping accurate records of gambling winning and losses using receipts, statements, tickets, or other records as proof. For example, if you wagered $5,000 and won $2,000, you can only deduct $2,000 in losses. So, you should keep: An accurate diary of your gambling winnings and losses1. NOTE:. Losses are reported on Schedule A line 16. Example: John wins $23,500 during the year playing slots and other casino games. In addition, you won’t be able to write off gambling losses unless you itemize your deductions. You have $200 in gambling income. If you had a big win, are concerned about your tax liability, or have any questions related to gambling winnings or losses, contact the. For 2022 tax returns (those filed in 2023. And to be clear, if you bet $3,000 and lost $3,000 you can't deduct that amount. You can’t deduct your losses without reporting your wins. $1,500 or more from keno after your wager. However, if you itemize deductions on the schedule A, then you may deduct gambling losses only up to the amount of the winnings claimed on your tax return. The standard deduction is a flat amount based on your filing status (single; married filing separately; married filing. Also, keep detailed records of the gambling losses you deduct for a period of at least five years. Gambling losses are not a one-for-one reduction in winnings. On the other hand, a professional gambler can deduct other expenses associated with their casino play (it's a JOB after all - ha!). In other words, you cannot claim losses that exceed your total winnings. So that's when your deductions are more than the standard deduction, which is $13,850 for single and $27,700 for married filing jointly for 2023. Place that total on Line 28 of Schedule A, Form 1040 . Someone stole your stuff. ) A tax credit, on the other hand, is a dollar. For New York purposes (Form IT-196, lines 21 through 24), you can claim these deductions: 2017 IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses So there you have it, that's what "itemizing your deductions" means. In addition, your gambling losses will only be able to be deducted on Schedule A if you itemize your deductions, as opposed to taking the standard deduction. With current law you would add $30k to your income meaning you have $80k of income subtracted by your itemized deduction of $28k. This form is used to report the winnings as taxable income. We do not control the destination site and cannot accept any. For example, let’s say you have $2,000 in recorded wins at Golden Nugget Casino Michigan but $3,000 in recorded losses. Finally, if you. You cannot deduct gambling losses unless you itemize (or are a professional gambler). Gambling losses are not deductible unless you have gambling winnings. There are numerous states (CT, IL, NC, for example) that do not allow any sort of gambling loss as a deduction. Bad news: if you don’t itemize your deductions, you will have to pay taxes on the entire winnings, even if you have a net gambling loss, as is the case for most individuals. You may deduct $10,000. You can only deduct gambling losses up to the amount of your winnings if. But there are still some tax deductions - known as above-the-line deductions - you can take without itemizing. The bad part is say you win 10k and have. You could only deduct $1,400 of the losses. $1,000,000, you don't have to worry about other itemized deductions. In addition, you won't be able to write off gambling losses unless you itemize your deductions . In other words, you can’t claim more in losses than you have in winnings, and you cannot claim the standard deduction. You can only itemize your losses up to $10,000 on your tax returns. You can't offset your losses dollar for dollar against your gains. • To report your gambling losses, you must itemize your income tax deductions on Schedule A . Deducting gambling losses. For a married couple filing jointly, the wagering winnings of. • The amount of gambling losses you can deduct can never exceed the winnings you report as income. Gambling losses go on schedule A line 28 and are not subject to the 2% threshold. Gambling losses can be deducted up to the amount of gambling winnings. However, in 2021, that $300 is deductible. Your. It’s over $12,950. Rather, you report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. Gambling losses: Gambling losses are deductible to the extent of gambling winnings. You can't deduct more in gambling losses than you have in gambling winnings for the year. If you’re in the red for the year, don’t expect to recoup those losses with tax deductions. You can only deduct gambling losses up to the amount of your winnings if you itemize deductions on Schedule A. So, if you win $1,000 and lose $1,500 in another league, your deduction is limited to just $1,000. If you are able to itemize your deductions, gambling losses can be. If you lost $1,000 on one trip and won $9,500 on another, though, you could claim the entire $1,000 in. Some states either don't allow a deduction for gambling. For example, if you had $10,000 in long-term capital losses, $4,000. Form 1040 Schedule 1 and U. However, you can claim your gambling losses as a tax deduction if you itemize your deductions. If you itemize deductions, you can deduct your gambling losses for the year on line 27, Schedule A (Form 1040). If they do you want to have all paperwork ready to go that adds up to show the loss. Related Tax Questions. sorry, that is wrong. Second, the losses you report can’t exceed your winnings. And in order to deduct your losses, you have to be able to itemize your deductions. My point is if you only have evidence of a $50k loss that is all I would claim. For example, your medical and dental expenses are only deductible to the extent they exceed 7. Even though the gambling winnings were reported on form 1099-Misc you can only deduct gambling losses as an itemized deduction. Assuming that was $51k and you had more losses than that, it would make sense to itemize. You can deduct gambling losses from your income, but there are a few catches. (If you're working online,. Those betting sites should be issuing you a tax form. The deduction however, unlike the gambling deduction, is subject to the 2%. You are able to deduct gambling losses up to the amount of your gambling winnings. Do you have to itemize deductions to claim gambling losses? Yes, gambling losses are only deductible as an itemized deduction on Schedule A. Gambling losses can be deducted on Schedule A. The amount of losses you deduct can’t be more than the amount of gambling income you reported on your return. Gambling winnings are reported on Form 1040 Schedule 1 on Line 8 as Other Income. If you don't have enough deductions to itemize, your screwed. You can only itemize your losses up to $10,000 on your tax returns. "Let's say you bet $1,000 and you get $3,000 back," says Romeo Razi, a Las Vegas-based. The expert concluded with a 99% level of certainty that Coleman had overall net losses during 2014 of at least $151,690. Gambling Losses You may deduct gambling losses only if you itemize your deductions on Schedule A (Form 1040 or 1040-SR) PDF and kept a record of your winnings and losses. You can deduct your losses, but only if you itemize your deductions on Schedule A (Form 1040). In addition, you won't be able to write off gambling losses unless you itemize your deductions . Gifts to individuals are not deductible. That law went into effect starting in 2014. There is one golden rule to keep in mind when deducting gambling losses on your tax return. Itemized Tax Deductions. Ask your own question now. For taxpayers who do not gamble as their trade or business, losses from gambling transactions can be deducted as an itemized deduction to the extent of any gambling winnings. Ones total tax is based on a wide variety of factors. Basically I got lucky and won two 777. It is not ‘common’ for a person to go from 0 gambling losses to $130k. You will still use Form 4684 to figure your losses and report them on Form 1040 , Schedule A. “The amount of gambling losses you can deduct can never exceed the winnings you report as income,” a TurboTax explainer details. Itemized deductions, such as state and local tax payments, mortgage interest, charitable contributions exceeding $300, and medical and dental expensesFor federal purposes, you can no longer claim an itemized deduction for a casualty or theft loss unless it is the result of a federally declared disaster. However, effective for tax years beginning January 1, 2021, c asual gamblers may deduct wagering losses claimed by the taxpayer as an itemized deduction on the federal income tax return for the same tax year. Some of the more common ones are:. Itemized Deductions: Gambling losses are considered itemized deductions rather than above-the-line deductions. When it comes to deducting gambling losses, they are limited to the amount that is won while gambling. The deduction for gambling losses is found on Schedule A. If you reported your $5,661 of income as 'hobby income', you would still need to itemize to deduct the $1,300 to offset any income. You never want to rely on your win/loss reports, but you can use them as ancillary data to back up your notes. Meaning if you win $2000 and lose $5000, only $2000 worth of gambling losses will qualify for deduction, and the rest can still be taxed. Gambling winnings are unique because you can also deduct your gambling losses and certain other expenses, but only in specific circumstances (see our article about this). Practically, IRS auditors may allow some reconstruction of these expenses if. Luckily, if you itemize deductions on Schedule A, you can take a deduction for your gambling losses, but it can never be more than your gambling winnings. Claim your gambling losses up to the amount of winnings, such as Other Itemized Deductions. But the itemized losses (which I’ve kept good electronic and diary record of) will offset ALL winnings. 02-01-2021 02:39 PM. Gambling winnings are unique because you can also deduct your gambling losses and certain other expenses, but only in specific circumstances (see our article about this). Because there is another way out. You can't reduce your tax by your gambling losses, if you claim the standard deduction. Claim your gambling losses up to the. Claim your gambling losses up to the amount of winnings, as "Other Itemized. If you itemize, you can deduct $400 for your losses, but your winnings and losses must be handled separately on your tax return. The only requirements are that you cannot report more losses than your winnings, and you must have records to support your claim. However, you get no deduction for your losses at all if you don’t itemize your deductions. And, of course, you always want. Gambling losses are reported on Schedule A (the form for itemizing). How much can I deduct in gambling losses? You can report as much as you lost in 2023, but you cannot deduct more than you won. Technically speaking, these are not deductions at all, but adjustments to income, even though they are also called above-the-line deductions. You are allowed to list your annual gambling losses as an itemized deduction on Schedule A of your tax return. Anything over can be carried over to future filings. Here are five bad days — and ways that tax experts say you could turn them into a smaller tax bill. If your California gambling winnings were from anything besides the following sources, the winnings would be taxable in California and you would need to file a nonresident California return. For your 2022 taxes, which you will file by April 18, 2023, teachers, counselors and principals who aren’t reimbursed for buying supplies can deduct up to $250. The tax deduction for gambling losses is only available if you itemize deductions. S. Contact an IRS audits attorney today to schedule a consultation. For example, if you reported $6,000 of gambling income and $8,000 of losses, you’d only be able to deduct $6,000. You can claim these deductions regardless of whether or not you claim the standard deduction or opt to itemize your deductions. Filing Status 3 or 4: $2,110 for each spouse. In making its decision, the court relied in part on the testimony of a gaming industry expert who testified on behalf of Coleman. This will offset your winnings. Michigan has a new individual income tax deduction for wagering losses sustained by casual gamblers, effective for tax years beginning in 2021. It is the last category listed. If your winnings are reported on a Form W-2G, federal taxes are withheld at a flat rate of 24%. But even if you don't receive forms, the IRS mandates you report gambling wins as income. Though you may not be able to deduct all your losses. For example, if you won $5,000 in a casino but lost $7,000, you can only deduct up to $5,000 of your losses. If you gamble for fun, you can itemize deductions and include gambling losses, but only up to the amount that you also won. 5% of your income to be greater than the standard deduction. “Taxpayers can deduct gambling losses only up to the amount of their gambling. 00 lotto tickets, and in VA the state gets I think 4% and federal its 24% for a total of 28%. In general, individuals not in a trade or business or an activity for profit, may take a standard deduction or itemize their deductions. Gambling losses are an itemized deduction; you can only get a deduction if the combination of all of your other itemized deductions exceeds your standard deduction. It simply disappears. It is possible to deduct your gambling losses as itemized deductions on your primary return, too. Gambling losses can zero out your gambling winnings, but they can’t reduce other income. DoNotPay provides you with the fastest, easiest, and most reliable way to file your gambling losses taxes. One final note: casual gamblers can deduct gambling losses as well, but not the same way as professionals. However, if your total itemized deductions are greater than the standard deduction available for your filing status, itemizing can lower your tax bill. Topic No. Thus, a casual gambler may only use this new. Can i deduct gambling losses { $5,000 } even if i don''t itemize? Ask an Expert. Even if your winnings don’t exceed those amounts and you don’t receive a W-2G, you’re still technically required to report your winnings to the IRS. If you have gambling winnings reported on Form W-2G (Certain Gambling Winnings), you can deduct your gambling losses up to the amount of your winnings on Schedule A (Itemized Deductions) of your federal income tax return. Folks who deduct gambling losses from their state income bills may also see a tax hike, Erspamer said. If you do not have enough to itemize, however, you cannot deduct the gambling losses. 2021 - $3,000 loss. So you can use losses to “wipe out” gambling income but you can’t show a gambling tax. Casinos send a W-2G form to the IRS for winnings above specific thresholds ($600 or more for most games). In that scenario, you would be taxed on the $11K. You should also have receipts, tickets, statements and documentation such as a diary or similar record of your losses and winnings to support. So you ask, why not declare myself a “professional” gambler. Gambling losses are reported on Schedule A (the form for itemizing). Winnings are reportable always. While you can write off some gambling losses if you itemize, that deduction can’t exceed the amount of your winnings. The maximum deduction you can make is $2,000. So that's one thing to. You can only deduct what you actually lost while gambling. Accurate record-keeping and supporting documents are essential to prove your losses, and you can only deduct losses up to the amount of. Keep in mind that you. , you cannot reduce the gambling winnings by the gambling losses and report the difference. It is the last category listed. For example, if your AGI is $50,000, you can only deduct losses that exceed $1,000 (2% of $50,000). If you itemize deductions , you may claim gambling losses up to your gambling winnings. Your gambling loss deduction cannot be more than the amount of gambling winnings. 501, Should I Itemize? Deductions reduce the amount of your taxable income. Such receipts also come in handy if you itemize tax deductions and can deduct your gambling losses. With a refinance, you can deduct points over the life of the loan — so, as an example, you could deduct 1/30th of the points every year for a 30-year mortgage, which would total $33 per year for. Once entered, you will be asked about gambling losses. Mega Millions. Starting in 2021 if you elected to itemize deductions on your federal return (you did not take the standard deduction) and deducted wagering losses from casual gambling, you may be eligible to deduct wagering losses. You can only deduct your losses up to the amount of winnings, and you have to itemize to deduct gambling losses. If you itemize, you can claim your gambling losses up to the amount of your winnings on Schedule A, Itemized Deductions, under ”Other Miscellaneous Deductions. You cannot deduct gambling losses unless you itemize (or are a professional gambler). GAMBLING GOTCHA #1 – Since you can’t net your winnings and losses, the full. It’s also important to note that the only way you can deduct gambling losses is if you are already itemizing your deductions on a Schedule A. Your gambling loss deduction cannot be more than the amount of gambling winnings. If they didn't withhold tax till want to do so. You can deduct gambling losses only up to the extent of gambling winnings, and the losses can't exceed the winnings. What you have to report as income is your actual winning bets of $5000, NOT the $2529, because that numbers would be net winnings (winnings-losses). When you enter your gambling winnings in TurboTax, the interview will also ask you questions regarding gambling losses. With the new bill, taxpayers wouldn’t be allowed to deduct losses to exceed taxes owed. However, this is only the case if you are able to itemize those losses. You may deduct gambling losses only if you itemize your deductions on Schedule A (Form 1040) and kept a record of your winnings and losses. You can claim your gambling losses as "Other Itemized Deductions. If you used your players card, you. If you itemize, you can deduct $400 for your losses, but your winnings and losses must be handled separately on your tax return. 95% state tax rate. Gambling Losses are reported on Form 1040 Schedule A as a Miscellaneous itemized deduction. You may only deduct gambling losses, to the extent of gambling winnings. You won't be able to deduct gambling losses if you lost more money than you won (excess losses) or if you're taking the Standard Deduction. Louisiana tax code currently allows an individual to deduct gambling losses from. Losses: You can deduct gambling losses that don't exceed your winnings as itemized deductions using Schedule A (Form 1040), but you need to provide records. What if you don’t have enough deductions to itemize? Tough luck! Maybe. There is no dollar limit on the write off but it’s limited to the extent of the gambling winnings. Also, the gambling loss deduction is limited to the amount of gambling winnings that you report as taxable income. In other words, if you are in the ~90% of americans who claim the standard deduction, you are screwed if you gamble, because you get taxed on gross winnings,. You can’t deduct gambling losses if you take the standard deduction. You can claim an "above-the-line" deduction on Schedule 1. The deduction can only be claimed if you choose to file Schedule A, Itemized Deductions. In 2023, that range is up to $13,850 to $27,700. You can’t, unfortunately, deduct losses that total more than your winnings. Those include total income, sources of that income, filing status, number of dependents, what deductions and/or credits one qualifies for, and a host of other variables. It may not seem very easy, but Bounds Accounting will lead you through the process from start to finish. The total you can deduct, however, is limited to the amount of the gambling income you report on your return. For example, the IRS. Therefore, if you don’t itemize and take the standard deduction, you can’t deduct gambling losses. The new $10,000 federal cap on the itemized deduction for state and local taxes does not apply for Iowa purposes. But there are still some tax deductions - known as above-the-line deductions - you can take without itemizing. To make the matter worse. You cannot simply reduce your gambling winnings by your gambling losses and report the difference. As before, a. The only way you can deduct losses directly against winnings is if this was your trade and business. You’ll need a record of your winnings and losses to do this. Finally, gambling losses can, in certain circumstances, trigger the dreaded Alternative Minimum Tax (AMT). Any excess losses for a year can’t be carried forward. If you have no winnings to claim, you can’t deduct your losses. As an example, let’s say that in a given year you went gambling twice, winning $6,000 in one instance, but losing $8,000 in. You can deduct gambling losses only up to the extent of gambling winnings, and the losses can't exceed the winnings. Specifically, your income tax return should reflect your total year’s gambling winnings, from the big blackjack score to the smaller fantasy football. If you itemize your tax deductions you may be able to deduct some of your gambling losses. If you gamble at other times. m. 00. In short: The only reason to actually deduct gambling losses would be if they — along with other deductions — are more than the standard deduction. However, your gambling loss deduction shouldn’t exceed your winnings. My W-2 G gambling win is offset by losses. The standard deduction in tax year 2022 ranges from $12,950 to $25,900 depending on your filing status. com. Some states allow you to deduct gambling losses and offset taxes on your winnings. Casualty losses are deductible only for losses due to federally declared disasters. You should speak with a Virginia tax attorney about whether and how to deduct your losses as the rules can be confusing. " “Gambling losses include the actual cost of wagers plus expenses incurred in connection with the conduct of the gambling. Without gambling you would have taxable income of $37. An individual may claim itemized deductions on an Arizona return even if taking a standard deduction on a federal return. Your total gambling deduction is limited to $800, the amount of your winnings. If they’re married to another educator and they’re filing jointly, the limit rises to $500. To report your gambling losses, you must itemize your income tax deductions on Schedule A. These can be found on the front of your federal Form 1040 in the Adjusted Gross Income section. Some states either don't allow a deduction for gambling. Furthermore, the law only applies to people who itemize their deductions, instead of taking the standard deduction (which is $12,500 for single people and $25,100 for married couples). Under Federal law, gambling losses are deductible for Federal tax purposes for those who are able to itemize their deductions. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. Deductible Losses. Form 1040 Schedule A. Yep - gambling losses are part of the itemized deduction portion (schedule A) of the tax return, only to the extent of gambling winnings. However, if you have $5,000 of winnings and $10,000 of losses, you can only deduct $5,000 of losses. If you itemize and plan to deduct your losses, you can only claim losses to the extent of your winnings, and you should keep accurate win/loss records in addition to the appropriate supporting documentation. They’re deductible, but only as itemized deductions. Standard vs. If you only claim standard deductions, you can’t use poker losses to offset your payable taxes. The cost of your food, lodging, etc. However, you must be able to substantiate your gambling losses with proper documentation, such as. How You can Have a Loss and Still Owe Taxes. Let's say you won a total of $7k at 3 different casinos but you play at 5 different casinos. To calculate your gambling losses, you should keep accurate records of your wins. For federal purposes, you can no longer claim an itemized deduction for a casualty or theft loss unless it is the result of a federally declared disaster. You can't. Level 15. Conversely, if you have $5,000 in losses, you can write off the entire $5,000. Gambling losses can only be deducted to the extent of gambling winnings. "If you’re in the red for the year, don’t expect to recoup those losses with tax deductions. ” You cannot reduce your gambling winnings by your gambling losses and report the difference. An amateur player, or someone who plays poker casually, can only use their losses for tax deductions if they report all of them as itemized deductions. For New York purposes (Form IT-196, line 20), you can claim casualty and theft losses. However, you can only deduct your loss up to the amount you report as gambling winnings. So you ask, why not declare myself a “professional” gambler. And gambling losses aren’t deductible in the AMT. You can also deduct certain casualty and theft losses. Meanwhile,. e. You can't deduct it directly from the winnings. You must include the U. Topic No. The key is you can’t deduct losses that amount to more than what you’ve won. Examples of medical and dental payments you can deduct To the extent you weren’t reimbursed, and with certain lim -If gambling winnings exceed $5,000, taxes will be withheld, and the recipient may have to pay up to 24% of the winnings towards these taxes. Secondly, the deduction for your losses is only available if you are eligible to itemize your deductions (have mortgage interest, real estate taxes, medical, charitable deductions, etc. For tax year 2020, the standard deduction is: Filing Status 1: $2,110. So if you had winnings of $2,000 and losses of $5,000, your deduction is. Gambling winnings are reported on Form 1040 Schedule 1 on Line 8 as Other Income. All casinos will have terms and conditions to protect them from abuse or fraud. If your losses are more significant than your winnings, your net gambling income will be zero, and you. To deduct your losses from gambling, you will need to: Claim your gambling losses on Form 1040, Schedule A as Other Miscellaneous Deduction (line 28) that is not subject to the 2% limit. The good news: Yes, gambling losses can be claimed as an itemized deduction on your taxes, but only up to the extent of your gambling winnings and only if you itemize. You must include the U. The amount of losses you deduct can't be more than the amount of gambling income you reported on your return. You can only deduct your losses up to the amount of your winnings. Here’s a breakdown of each: 1. To deduct gambling losses, you must provide records that show the amounts of both your winnings and losses, like: Receipts. Understanding how free slot games work with casino bonuses. Gambling losses. Gambling Losses Tax. 1040 Page 2: Income Tax. Assuming you file jointly with your wife, the federal tax would only be 24% if your joint taxable. You can "back it out" as a negative number on the "other income" line (use the amount of the winnings as a negative number, don't create a loss on the tax return). Tip: For tax years 2020 and 2021 only: Even if you don't itemize deductions, you can still deduct up to $300 of cash charitable contributions on your 2020 tax return (the one you'll file in 2021). 2022, see Pub. ago. Additionally, winnings and losses must be reported separately, i. Itemized Deductions: Gambling losses are considered itemized deductions rather than above-the-line deductions. are included in the cap for deducting. Do online casinos report your winnings to. Also note the $11K will be included in your AGI. “For example, if you have $5,000 in winnings but $8,000 in. So if you lose $500 but win $50, you can only deduct $50 in losses on your federal income tax returns. The full amount of your gambling winnings for the year must be reported on line 21, Form 1040. If you itemize deductions, you can offset your winnings by deducting gambling losses. ). That way, you don't leave anything on the table. This replaced a tiered system, which had higher rates based on the amount you. You can’t deduct more than you won, even if you did actually lose more than you won during the course of the year. For example, if you win $2,500 from gambling but lost $4,500, you can only deduct $2,500 of those losses. Anybody can deduct their losses only up to the amount of their total gambling winnings. Limitations apply. Taxpayers may still deduct eligible state and local taxes paid, independent of the federal dollar limitation. You would typically itemize deductions if your gambling losses plus all other itemized. If you don’t report, you may get hit with higher withholding levels on the Federal level. You can claim your gambling losses as “Other Itemized Deductions” on your income tax. You can't use it to offset your gambling gains in other years. Fortunately, although you must list all your winnings on your tax return, you don't have to pay tax on the full amount. And in order to deduct your losses, you have to be able to itemize your deductions. Winnings from gambling can be taxable and should be reported on your tax return. Whether it's $5 or $5,000, from the. You must always report your winnings and losses separately, rather than doing it on one document and reporting a net amount. , you can deduct gambling losses, but only to the extent of your gambling winnings. The easiest and most accurate way to find out how to report your gambling winnings and losses is to start a free tax return on eFile. 4 standard deduction) If you netted winnings of $2,000 you’d have $39. Residents: report the amount of wagering losses you. The Internal Revenue Service allows you to deduct gambling losses if. However, these deductions may not exceed. The key is you can’t deduct losses that amount to more than what you’ve won. And gambling losses aren’t deductible in the AMT.